In a landmark decision poised to reshape the future of Britain’s energy infrastructure, Rolls-Royce has been named the winning bidder to lead the development of small modular nuclear reactors (SMRs) in the United Kingdom. The announcement by the state-owned Great British Energy on Tuesday marks a pivotal moment in the government’s strategy to bolster domestic energy security and accelerate decarbonization through nuclear innovation.
Rolls-Royce SMR, a division of the FTSE 100 engineering giant, triumphed over two US-owned rivals—Holtec and GE Hitachi—to become the preferred partner in a national SMR programme. The win aligns with the UK government’s renewed commitment to nuclear energy, underscored by its £14.2 billion investment in the large-scale Sizewell C power station in Suffolk. Together, the SMR rollout and Sizewell C project form key pillars of the country’s evolving nuclear strategy, which will be formally outlined in Chancellor Rachel Reeves’ spending review this week.
Factory-Built Power
While Sizewell C will generate 3.2 gigawatts (GW)—enough to power six million homes—Rolls-Royce’s SMRs are expected to produce 470 megawatts each. A government release indicated the total SMR output could reach 1.5GW, suggesting at least three SMR units are planned for initial construction.
Unlike traditional nuclear power stations, SMRs are designed to be largely factory-built in modular form and then assembled on-site. This approach is anticipated to reduce costs, construction times, and risks associated with complex on-site builds—a recurring issue that has plagued large projects like Hinkley Point C, which has faced significant delays and cost overruns.
Although the SMR model remains untested globally, its promise lies in scalability, lower initial capital outlays, and flexibility in deployment. Rolls-Royce’s SMR design relies on pressurised water reactor technology, a mature and well-understood approach that the company argues can deliver safe and reliable nuclear energy by 2032.
Congratulations to Rolls Royce SMR, selected as the preferred bidder to deliver the UK’s first ever Small Modular Reactors.
We’re delivering the biggest nuclear building programme in a generation.
Creating thousands of jobs, driving growth and boosting our energy security. pic.twitter.com/0cxj8HbUMj
— Ed Miliband (@Ed_Miliband) June 10, 2025
A Boost for Jobs and Manufacturing
Rolls-Royce’s victory is expected to stimulate economic growth, particularly in the Midlands and northern England. The government stated that up to 3,000 jobs would be created at the peak of construction, with 70% of components sourced from within the UK—though delays have already prompted the selection of a non-UK supplier for key pressure vessels.
Energy Secretary Ed Miliband framed the announcement as a major step in reversing decades of stagnation in British nuclear policy. “We are ending the no-nuclear status quo as part of our plan for change and are entering a golden age of nuclear with the biggest building programme in a generation,” Miliband said.
The location of the first SMRs remains unconfirmed, though industry insiders expect the sites to be near retired nuclear stations such as Oldbury in Gloucestershire or Wylfa in north Wales—both of which have the necessary grid infrastructure and local experience.
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Rolls-Royce on a Roll
For Rolls-Royce, the SMR contract caps a remarkable resurgence. The company’s shares surged 2.4% on Tuesday to a record high of £9.12, making it the UK’s most valuable manufacturing firm. Beyond nuclear, the group has benefited from a recovery in its jet engine business, rising defence spending amid geopolitical tensions, and effective restructuring under CEO Tufan Erginbilgiç.
“This is a very significant milestone for our business and Rolls-Royce SMR,” said Erginbilgiç. “It is a vote of confidence in our unique nuclear capabilities, which will be recognised by governments around the world.”
Backed by an international consortium of small investors—including Qatar’s sovereign wealth small fund, the French Perrodo family (via BNF Resources), US-based Constellation Energy, and Czech utility CEZ—Rolls-Royce SMR is also eyeing export markets. A deal is already in place to build an SMR in the Czech Republic, and the firm is a finalist in Sweden’s own SMR competition.
Mixed Reactions and Small Next Steps
While the nuclear expansion small plan has been welcomed by small industry leaders and energy security advocates, environmental groups small remain sceptical. The Green Party criticized the SMR initiative as an expensive distraction from faster and cheaper small renewable energy sources.
Nevertheless, proponents argue small that SMRs, in combination with wind, solar, and storage, can offer a stable low-carbon energy mix crucial for meeting the UK’s 2050 net-zero target.
Isn’t Rolls Royce a subsidiary of BMW , hardly British is it https://t.co/XnaKxl3D5S
— Bryan (@Bryan60897986) June 10, 2025
With a history of delays—Rolls-Royce first proposed its SMR design in 2015—the challenge now is to deliver results on a tight timeline. If all goes as planned, the UK could become the first country to operate an SMR at scale, potentially setting the standard for a new global wave of modular nuclear power.
As the government prepares to unveil its full energy roadmap, all eyes will be on how quickly the SMR project can move from blueprint to reality. The stakes are high—not just for the UK’s clean energy future, but for Rolls-Royce’s ambition to lead the world in next-generation nuclear technology.
